William Eichler 17 March 2016

Welsh councils need to improve financial management, says auditor

Auditor voices concerns around the financial management and governance of Welsh councils, despite noting improvements in the delivery of end of year accounts.

The Auditor General for Wales has published a new report which identifies an improvement since 2013-14 in the timeliness of production of audited accounts.

Entitled Financial Management and Governance in Local Councils 2014-15, the report shows the number of completed audits had increased to 96% by 30 September 2015.

This was an improvement on the previous financial year - 94% - and is in line with moves from the Welsh government to encourage greater transparency by public bodies.

The number of councils with qualified audit opinions has, however, increased by 3%, from 85 in 2013-14 to 113.

The auditor was particularly alarmed at how many councils were receiving qualified opinions for the first time.

The report shows 62 of the 113 councils qualified in 2014-15 had not received a qualified audit opinion between 2011-12 and 2013-14.

This, the report says, could be avoided if councils put adequate and effective financial management and governance arrangements in place.

The Auditor General also found that an ‘unacceptably high’ number of councils - 95 - have received qualified audit opinions for two or more of the last four financial years. Many were penalised for problems previously flagged.

New audit arrangements for town and community councils for the 2016-17 audit have also been outlined, including examining the councils' system for managing payroll and adopting a Code of Conduct to ensure effective governance.

Auditor General for Wales, Huw Vaughan Thomas said: ‘Given the progress made last year by community and town councils in submitting timely accounts the results for this year are met with much disappointment.

‘A number of councils who have previously submitted their accounts on time and to standard have failed to maintain their previous standards and it is unacceptable that so many councils have allowed standards to fall.’

‘I would strongly encourage councils to make a commitment to addressing the common issues and weaknesses highlighted in today's report and work closely with auditors to prepare future accounts to an acceptable standard,’ he advised.

SIGN UP
For your free daily news bulletin
Highways jobs

Service Director - Finance

Isle of Wight Council
£95,212 to £102,389
We need a talented and experienced Service Director of Finance to join us and play a pivotal role Isle of Wight
Recuriter: Isle of Wight Council

Strategic Director of Finance and Deputy Chief Executive (Section 151)

Isle of Wight Council
£120,536 to £129,500
Strategic Director of Finance and Deputy Chief Executive (Section 151) Isle of Wight
Recuriter: Isle of Wight Council

Service Director - Education

Isle of Wight Council
£95,212 to £102,389
This is a great time to join our Children’s Services senior leadership team as a Service Director for Education where you’ll provide system leadership Isle of Wight
Recuriter: Isle of Wight Council

Class Teacher (Primary)

Durham County Council
£32,916- £51,048
Primary School Class Teacher M1-UPS3 (£32,916  - £52,149) Permanent, Full-time Contract to begin in September 2026.   The Governors of this happy and Durham
Recuriter: Durham County Council

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanentPart Time, 22.2 hours per week£44,258 to £52,068 per annum FTE, £26,554.80 to £31,240.80 per annum (pro rata)Location
Recuriter: Essex County Council
Linkedin Banner